Tesla triples deliveries of electric cars but share price tumbles

Tesla triples deliveries of electric cars but share price tumbles

Troy Powers
January 3, 2019

And we ask what our readers what effect they think lower tax credits will have on electric cars in 2019.

At the same time, Tesla said it would cut the prices of its Model S, Model X and Model 3 by about £1,590 because tax credits for electric vehicles are due to end in the US. That still doesn't quite make up for the $7500 incentive's loss (combined with the new $3750 tax credit, customers now save around $5750), but it's certainly better than nothing.

Now, Tesla has taken things a step further, opting to slash the price of its Model 3, Model S, and Model X vehicles by $2,000 across the board.

CNBC reports that Elon Musk's Tesla has yet again run into another stumbling block, once again failing to meet its expected fourth quarter delivery estimates.

Overall, total production rose 8% to 86,555 vehicles.The company churned out 61,394 Model 3s, up from a total of 53,239 Model 3s in the third quarter.

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The company said in a statement before the markets opened that it delivered over 245,000 electric cars and SUVs last year, almost as many as all previous years combined.

FactSet, which compiled an average estimate from nine analysts, projected that Tesla would deliver 2000 more vehicles than it did, including 1750 more Model 3 vehicles. But some bearish investors are likely interpreting it as a move to stimulate demand, said Wedbush analyst Dan Ives. Tesla also produced a total of 25,161 Model S and X, which is consistent with its long-term run rate of around 100,000 units per year.

Tesla Inc has started taking orders for its Model 3 sedan in China for a deposit of 8,000 yuan ($1,153.60), according to the electric carmaker's China website.

Tesla is banking that the Model 3, which now starts at $46,000 but is expected to feature a cheaper base model in the near future, will prove to be affordable enough to help electric vehicle adoption grow beyond a niche consumer base of affluent buyers primarily located on the coasts.

But deliveries of the Model 3 sedan, Tesla's cheapest vehicle, were less than expected. Our inventory levels remain the smallest in the automotive industry, and we were able to reduce vehicles in transit to customers by significantly improving our logistics system in North America. Worldwide deliveries in Europe and China will start in February 2019. "We continue to believe Model 3 demand remains strong, particularly as the company has not begun global shipments or introduced leasing options, and are buyers on any weakness", Kallo wrote.